Markets may need to consolidate: Anagram

According to Anagram Research report, Markets may need to consolidate as there has been no major market moving event.

Anagram Research report:

Markets may need to consolidate as there has been no major market moving event. If you are someone who believed that the trust vote would be cake walk for the UPA, you may sound a bit nervous after seeing that the likes of Ajit Singh have joined the other camp. If you felt earlier that the UPA would lose, you would be discouraged by the lack of any  new 'catch' by BJP.
 
The talk of Oil India and NHPC IPOs later in September augur well for the markets. These are not a part of the reforms that the Government want to do after winning the trust vote. They were merely put on the back burner as markets fell. The FIIs are still in the short covering mode in Index futures. Banking stocks have done well on short covering and have seen some fresh built up. Metals and IT have seen shorts. It may not be a bad idea to hedge your positions by constructing a ratio bear spread, as explained in our weekly edition.

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